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Clergy Compensation Manual
For Clergy and Parish Councils
Effective January 2020-January 2021
Antiochian Orthodox Christian
Archdiocese of North America
. . . . . . . . .
Department of Clergy Insurance and Retirement
Antiochian Orthodox Christian Archdiocese of North America
358 Mountain Road
P.O. Box 5238
Englewood, NJ 07631-5238
(201) 871-1355
. . . . . . . . .
Contents
Introduction 1 1 Salary Guidelines 2
Recommended Stipends 2
Stipend Guidelines for Full-time Pastors/Assistants 2
Stipend Guidelines for Part-time Clergy 3
Mandatory Allowances and Benefits 3
Housing, Car, Tax, and Insurance Benefits 4
Vacation and Travel Expenses 5
Moving Expenses 5
Social Security and Income Taxes 5
Estimated Tax Payments 5
Disallowance of Clergy Severance Compensation 6
2 Life and Disability Insurance 7
Life Insurance 7
Death Benefit 7
Supplemental Insurance 8
Long-term Disability Insurance 8
Applying for and Receiving Disability Benefits 8
Other Disability Benefits 9
3 Retirement Planning 10
Mandatory Defined Contribution Plan 10
Retired Clergy Housing Allowance 12
Allowance for Active Clergy Eligible under the Old Plan 12
Allowance for Disabled Priests, Early Retirees, and Widows 12
Personal Retirement Plans 12
Individual Retirement Accounts (IRAs) 13
Contributing to a Personal Retirement Plan 13
4 Health Insurance 14
Plan Description 15-16
Eligibility and Enrollment 17
Alternatives to the Archdiocese Plan 18
5 Confidential Assistance Program 19
Availability of CAP Services 19
Referrals and Follow-up 20
Annex: Social Security Retirement Calculations 21
1
. . . . . . . . .
Introduction
In 1980, Metropolitan PHILIP, of thrice-blessed memory, appointed a commission
to make a thorough study of the stipends and benefits available to the clergy of the
Antiochian Orthodox Christian Archdiocese of North America. This directive
demonstrates that the welfare and dignity of the clergy have long been of great
concern to the Metropolitan Primate and to the Antiochian Archdiocese. His
Eminence Metropolitan JOSEPH continues to share that priority.
The Department of Clergy Insurance and Retirement has responsibility for
coordinating the policies for stipend guidelines, health insurance, long-term
disability and term life insurance, retirement planning, and the confidential
assistance plan. The Department consists of His Eminence Metropolitan Joseph,
Very Rev. Fr. Michael Ellias of Brooklyn, NY, Chairman, Very Rev. Fr. Thomas
Zain, also of Brooklyn, NY, Fr. Paul Matar, Fr. Nicholas Belcher, Ms. Mary
Winstanley-O’Connor of the Archdiocese Board of Trustees and the Order of St.
Ignatius of Antioch, Dr. Elias Hebeka of the Archdiocese Board of Trustees
Investment Committee, Mr. Salim Abboud, CFO, Mrs. Marlene Ayoub, Registrar,
and Mr. Sameh Khouzam, Comptroller.
This revised Clergy Compensation Manual attempts to bring together all the
pertinent policies necessary for our clergy and parish councils to make informed
decisions about salaries and personnel matters. Please read this manual
carefully. The Department welcomes any input or suggestion users of this
manual may have.
2
. . . . . . . . .
1. Salary Guidelines This section provides information about recommended stipends and mandatory
allowances and benefits. This section also provides some recommendations for
handling Social Security and income tax payments.
Recommended Stipends
The 2015 Archdiocese Convention that met in Boston, MA, endorsed the report of
the Department of Clergy Insurance and Retirement in which the Department
recommended that stipend guidelines for full-time pastors should increase
annually according to the rate of inflation. These Guidelines exist for the benefit
of the clergy and parish councils. As in past versions of this manual, each priest
and parish council must adjust the recommended Basic Minimum Monthly
Stipend according to local factors.
To apply these guidelines equitably, it is necessary to recognize that each parish
is unique in terms of its size, geographical location, financial stability, and
sociological background. Each priest, in turn, has unique characteristics, such as
length of service in the parish and the archdiocese, personal record of
achievement, and ecclesiastical rank. These factors should be taken into
consideration in determining the pastor’s stipend.
Each version of the Guidelines has stressed the need to consider local conditions
and has emphasized the words “guidelines” and “minimums.” If differences or
conflicts arise, the diocesan auxiliary bishops are available to act as intermediaries,
but the Metropolitan Primate will render any final decisions. All stipends must be
reported to the Archdiocese and approved by the Metropolitan Primate on
February off every year. Please note that the guidelines do not divide the
compensation and allowances according to IRS rules (1099 vs W2). The
Archdiocese divided allowances in order to reflect various stipend
calculations made to pastors in order to get to a fair total.
Stipend Guidelines for Full-time and Full-time assistant
Pastors
The following guidelines apply to full-time pastors and full-time assistant pastors.
The Basic Minimum Monthly stipend has been indexed to reflect an increase of
1.6 % for 2020. These numbers reflect the COLA increase. Please note that the
stipend varies for each state according to the cost of living (please go to
www.CityRating.com for your city’s Consumer Price Index).
3
. . . . . . . . .
Size of Mission or Parish
by contributing
membership1
Basic Minimum Monthly
Stipend
under 25 Negotiable (not less than
$1500)
25 to 50 $2,340.00
51 to 100
101 to 150
$2,540.00
$2,745.00
151 to 250 $3,455.00
251 to 350 $4,165.00
351 to 450 $4,979.00
451 or more $5,690.00
At the time of Assignment and every February, the stipend is agreed upon by the
Archdiocese, the pastor, and the parish council according to the formula on page 4.
By the end of each year, parish councils are to grant automatic cost-of-living
adjustments based on the COLA published by the social security administration.
The link is https://www.ssa.gov/news/cola. Additionally, the years of experience
of active ministry will be also adjusted accordingly. Such adjustments are not
substitutes for merit raises. A yearly update of the compensation package is to
be sent to the Archdiocese at [email protected] no later than February 25.
Stipend Guidelines for Part-time Clergy
Assistant part-time pastors, deacons, and lay assistants who are assigned for part-
time ministry in a parish should receive stipends and benefits agreed upon by the
Archdiocese, the appointed pastor and the parish council. By the end of each year,
parish councils are to grant automatic cost-of-living adjustments based on the
COLA published by the social security administration. The link is
https://www.ssa.gov/news/cola. Additionally, the years of experience of active
ministry will be also adjusted accordingly. Such adjustments are not substitutes
for merit raises. A yearly update of the compensation package is to be sent to the
Archdiocese at [email protected] no later than February 25. Part-time
pastors and assistant pastors are strongly encouraged to find employment which
does not contradicts Christian and Orthodox ethics in case the stipend is not
sufficient to support them.
Mandatory Allowances and Benefits
Parishes must provide the following allowances and benefits to full-time clergy
and:
Housing, car, tax, and insurance benefits
1 At the time of negotiating the stipend, the Archdiocese and the parish council
will take into consideration the number of people or households actively served by
the pastor in the parish reflected on the Census Form.
4
. . . . . . . . .
Paid vacation time
Travel expenses for Archdiocese/church related events
Moving expenses
A bi-yearly 1 %2 increase of the minimum stipend for each year of active
ministry within the Antiochian Archdiocese of North America.
Formula:
Minimum stipend+ (minimum stipend*0.5/100 * years of active
ministry) + (minimum stipend* CPI)
Example:
(priest active for 21 years in a 51 to 100 pledge parish community)
$2540 (51 to 100 pledges) + 2540*0.5/100 * 21 (minimum stipend * 0.5/100*
21 years of active ministry within the Antiochian Archdiocese of North
America) + {$2540* 2.58/100 (CPI of your city)} =$2,872.23
Housing, Car, Tax, and Insurance Benefits
In addition to the Basic Minimum Monthly Stipend, parishes must provide the
following allowances and benefits to full-time clergy:
A parish home or a fair housing allowance which depends on local real estate
markets.
Payment of utilities (Electric, water, sewage, heating, Internet, cellphone
(pastor’s cell phone only, neither his wife’s nor his children) or a fair
allowance for same.
Payment of not less than 50% of the U.S. Social Security tax or its Canadian
equivalent.
An allowance of not less than $400 per month for auto maintenance and
operation to cover gas, oil, tires, repairs, tolls, etc.
An allowance for the full cost of auto insurance. (the pastor’s car insurance
only, neither his wife’s nor his children)
The full cost of the Archdiocese Group Insurance Plan for life and long-term
disability.
2 0.5 % per year of active ministry experience.
5
. . . . . . . . .
An allowance for the entire cost of medical insurance for the priest and his
family. The Joint Orthodox Health Plan, as described in this manual, is the
minimum requirement for benefits levels. The parish may provide the same
benefit level at a lower cost, if locally available.
All reasonable expenses for travel, meals, and lodging incurred while
attending the Archdiocese Convention, Diocesan Parish Life Conferences,
Archdiocesan Clergy Symposium, deanery clergy meetings, and mandatory
retreats and seminars.
Annual Paid Vacation
Parishes must also assume the following obligations:
Annual paid vacation period according to seniority:
1 to 10 years
ordained
16 days (2 Sundays)
11 to 15 years
ordained
23 days (3 Sundays)
16 or more years
ordained
30 days (4 Sundays)
N.B. If the parish retains another priest to serve while the pastor is on vacation or
is incapacitated by illness, the parish must cover the expenses and an honorarium
for the priest who is substituting.
Moving Expenses
When the Metropolitan Primate assigns or transfers clergy, the receiving
community pays all reasonable moving expenses.
Social Security and Income Taxes
The parish is responsible for withholding at least 50% of a priest’s U.S. Social
Security tax or the Canadian equivalent. The total Medicare and Social Security
tax is currently 15.3% of gross salary, including housing allowance for self-
employment earnings. The priest is responsible for setting aside enough funds to
pay the balance of this tax as well as funds for federal and state income tax.
6
. . . . . . . . .
Estimated Tax Payments for “Self Employed” status
The federal government and most states require quarterly estimated tax payments
from individuals whose employers do not withhold all taxes from their salaries;
therefore, clergy must make quarterly payments of the estimated total Social
Security (15.3%) and income tax due for the current year. The parish is to
compensate the pastor for (15.3/2=7.65) 7.65% of the self-employment tax (for
1099 employees).
Consult with an accountant or other tax or financial advisor to obtain the correct
forms that must be filed with payments and to calculate the amount of the
quarterly payments. The Internal Revenue Service and state departments of
revenue impose stiff penalties for insufficient or irregular payment of estimated
taxes.
Disallowance of Clergy Severance Compensation
Because our clergy serve our parishes with the blessing of the Diocesan Bishop
and the Metropolitan Archbishop, and may be transferred at any time at the sole
discretion of the Diocesan Auxiliary Bishop and the Metropolitan Archbishop,
severance packages and/or severance compensation is not allowed.
7
. . . . . . . . .
2. Life and Disability Insurance
The Antiochian Archdiocese now provides both life insurance and long-term
disability insurance for its clergy through Cigna. Aetna sold the plan to Cigna
during 2018. The latest change raised the price to $150 per participant for 2018.
The Archdiocese covered $50 per participant for 2018 in order to relieve this
burden from parishes. The Archdiocese covered also by paying $15 dollars per
participant for 2019 and will continue to do so for 2020. This will raise the
monthly premium for parishes to $135 As mentioned in Section 1, all parishes
must pay for these benefits via their $135month3 payment to the Archdiocese.
Upon becoming eligible, all clergy should submit a completed enrollment form to
the Antiochian Archdiocese headquarters to participate in the Archdiocesan Group
Life and Long-Term Disability Program.
This section briefly summarizes the life and disability benefits available to eligible
clergy. The benefits are fully described in the booklets that Cigna provides to
enrolled clergy. Refer to these booklets for more detailed information about
coverage. Keep the most recent copies of these booklets with this manual so that
up-to-date information about coverage is readily available when needed.
Life Insurance
Participation in the Archdiocese Life Insurance and Long Term Disability plan is
still mandatory for all full-time pastors. The yearly cost of $16204 per year is the
sole responsibility of the parish. Once the priest retires, the Archdiocese will
continue to pay the premium of the life insurance on the church’ behalf.
Death Benefit
At the demise of a priest enrolled in the Archdiocesan Group Life and Long-term
Disability Program, the surviving spouse or other designated beneficiary receives
a $150,000 death benefit for those clergy less than seventy (70) years of age.
When a priest reaches age 70, the death benefit to the surviving spouse or other
designated beneficiary decreases to $75,000.
The Department strongly urges surviving spouses and beneficiaries to consult a
financial advisor as to maximizing this benefit.
3 Canadian Churches: The value of 135 US Dollars in Canadian Dollars at the
exchange rate by the time of payment. 4 Canadian Churches: The values of 1620 US Dollars in Canadian Dollars at the
time of payment.
8
. . . . . . . . .
Supplemental Insurance
The Archdiocese purchased a new insurance policy on all our clergy for $40,000
at no additional cost to the clergy or the parishes; however, this additional
coverage will flow back into the Retired Clergy House Allowance fund and not to
the insured in order to extend the useful life of the Retired Clergy Housing
Allowance. This action requires that all clergy complete the Beneficiary
Designation form in the highlighted areas and return the completed form to the
Antiochian Archdiocese.
By signing this form, you name the Retired Clergy Housing Allowance Fund as
the beneficiary for this new policy. Please note that your beneficiary for the life
insurance policy which is already in place (the one that is funded by your parish’s
payment of $135 per month) will not be affected.
Long-term Disability Insurance
This section describes the process for receiving disability payments when a priest
becomes disabled. It also identifies other sources of disability income in addition
to those provided by insurance coverage.
Applying for and Receiving Disability Benefits
When an active priest who is covered by the Archdiocesan Group Life and Long-
Term Disability program becomes disabled, he must notify the archdiocese
immediately to request the proper disability claim forms and applications for
benefits.
After thirty (30) days of continuous disability, known as the “elimination period,”
the priest should send the disability claim forms, with appropriate signatures, to
the Archdiocese. The priest should also complete and forward the Claim Form for
Premium Waiver on his life insurance. The Archdiocese forwards the completed
forms with additional paperwork to the insurance company.
If the insurance company approves the claim, the insured receives the following
disability payments:
$500 per month from the Archdiocese for up to sixty (60) days of continuous
disability and
$2,000 per month from the insurance company for as long as total disability
lasts or until age 65, whichever comes first; these payments begin after the
first ninety (90) days of disability (that is, after the 30-day elimination period
plus the 60 days covered by the Archdiocese)
9
. . . . . . . . .
Other Disability Benefits
Unless a priest has opted to exempt himself from the U.S. Social Security system,
the priest may also be eligible to receive disability payments (SSI) from the Social
Security Administration. These payments begin after six months of continuous
disability and are in addition to the $2,000 per month from the insurance
company.
The priest’s disability income of $2,000 per month from the insurance company
ceases at age 65.
10
. . . . . . . . .
3. Retirement Planning This section describes the vested 401(k) Defined Contribution Plan which began
in January 2013.
Mandatory Defined Contribution Plan
Retired Clergy Housing Allowance
Personal retirement plans, including Retirement Selector Accounts (RSAs),
Individual Retirement Accounts (SEP and traditional IRAs) and New
Mandatory Defined Contribution Plan
Mandatory Defined Contribution Plan
Effective January 1, 2013, the Antiochian Archdiocese inaugurated its first
mandatory and contributory employer-sponsored pension program for the
clergy. The Budget Committee of the Archdiocese approved the program in April
2012, and the Archdiocese Board of Trustees approved it in June 2012.
The program qualifies under IRS Code 401(k) as a Defined Contribution Plan
which will combine participation and contributions from the priest, the parish and
the Archdiocese.
The parish will deduct a minimum of 3% of the priest’s stipend and will match
that sum (capped at the first $40,000/year or a contribution of $100/month).5 The
Archdiocese will withdraw that amount every first of the month from the Church
bank account by EFT, add an additional $100/month and forward the deposit to
the fund managers as long as both the priest6 and the parish adhere to the rules of
the program; however, both the clergy and the parish are entitled and encouraged
to make larger contributions. Please note that the Archdiocese is to be informed in
December of every year regarding the contribution changes for the year to come.
Clergy serving in Canada will need to submit a “T4” tax form to ManuLife,
the Canadian provider, in order to determine eligibility and to comply with
Canadian tax law. The provider will provide counsel on investment selection
and compliance.
Canadian clergy should also send their checks to the Archdiocese
Headquarters but made payable to the “Diocese of Canada and Upstate New
York.” The Archdiocese will then forward the funds with its contribution to
the provider through the Auxiliary Bishop of Ottawa.
5 If the 3.0% is less than $100 per month than the parish should endeavor to
contribute $100 per month. 6 This program is for priests serving under the Antiochian Archdiocese of North
America and in an Antiochian Church. Priests who are on loan cannot be in this
program since they are “employed” by the Jurisdiction that they are serving. We
encourage them to participate in any plan that the Jurisdiction offers.
11
. . . . . . . . .
The Archdiocese’s matching portion will come from the operating budget and a
grant from the Order of St. Ignatius of Antioch.
Each priest will have an individual retirement account based on the amount of his
submissions, the match by the parish and the contribution of the Archdiocese.
Because this program qualifies as a “salary deferral” plan, the participant has the
option to choose either a “pre-tax” designation or a “Roth” (“after-tax”)
designation. (Please confer with your financial or tax advisor to make an
appropriate choice.)
All contributions by the priest will be automatically vested, but the contribution of
the parish and the Archdiocese are vested after three years of continuous service.
Those clergies who are over fifty (50) years of age are entitled to make “catch-up”
contributions.
The priest may begin making withdrawals from the plan when he reaches normal
retirement age and stops working. By IRS regulations he must begin to make
withdrawals no later than age 70 ½ in a non-Roth account. He may, however,
rollover the proceeds to an IRA or other annuity within sixty (60) days of the
distribution.
The priest’s wife will automatically be the beneficiary of his account unless he
specifically designates a different beneficiary. Unmarried clergy may nominate
any beneficiary, including the retirement fund or the Archdiocese itself.
In addition to the mandatory participation in the new Defined Contribution Plan the
Department of Clergy Insurance and Retirement strongly recommends additional
retirement savings. The priest can either add a higher percentage of his own
earnings to the Defined Contribution Plan, or he can utilize other tax-advantaged
savings vehicles as described below.
12
. . . . . . . . .
Retired Clergy Housing Allowance7
The funding for the Retired Clergy Housing Allowance has historically derived
from the Archdiocese’s operating budget and the generosity of the Order of St.
Ignatius of Antioch. Several years ago the Antiochian Women stabilized the fund
through a five-year campaign. It is, therefore, in priests’ interest to encourage new
memberships and upgrades in the Order and to offer their full support for the
Antiochian Women.
The Metropolitan Primate may grant the Retired Clergy Housing Allowance at
his discretion as a housing stipend, which means that the allowance is not taxable
under the U.S. federal tax code. The Retired Clergy Housing Allowance is not a
qualified pension payment. There is no vesting. This Housing Allowance is a
grant. The Metropolitan Primate can stop it at any time. The formulas for
calculating the allowance depends on the status of the priest at the time of
retirement. Please note that retired clergy who decide to permanently transfer
to other jurisdictions will not be eligible to receive the grant and will lose the
Retired Clergy Housing Allowance.
An actuarial study of the Retired Clergy Housing Allowance showed that due to
our rapid growth the fund was unsustainable for the long-term in the absence of an
infusion of capital. Given the increasing demands on the Archdiocese’s operating
budget, such an increase is unlikely.
All current recipients of the Retired Clergy Housing Allowance will continue to
receive their full stipend. The Department of Clergy Insurance and Retirement
continues to monitor the assets of the Retired Clergy Housing Allowance carefully
through periodic actuarial studies and other means. As of this revision of the
Clergy Compensation Manual, we are pleased to announce that Metropolitan
JOSEPH has made the commitment that all clergy will receive whatever amount
they expected from this fund (according to the guidelines outlined above, that is, at
his discretion as has always been the case) as of their status in the fund on
January 1, 2013 (the date when the new plan started). Please note that retired
clergy who decide to serve under different jurisdictions will immediately lose
the monthly grant.
7 All Clergy Ordained after January 1, 2013 must enroll in the 401(K) retirement plan and do
not fall under the Retired Clergy Housing Allowance. The Retired Clergy Housing Allowance
is not an option for them at the time of their retirement.
13
. . . . . . . . .
For example, if a full-time pastor (under the Antiochian Archdiocese, not on Loan
to other jurisdiction, nor joined another jurisdiction) has served in the archdiocese
for 15 years as of January 1, 2013, he will receive $400.00 ($26,67 per year of
service as full time pastor in the Antiochian Archdiocese) a month from the old
“Clergy Housing Allowance” in addition to whatever he has accumulated in the
new 401(k) plan. Those clergies who have been serving the Antiochian
Archdiocese exclusively on a full-time basis for 30 years or more as of January 1,
2013, will receive the maximum $800.00 a month when they retire according to
the guidelines above. We thank Metropolitan JOSEPH for making this
commitment even though this was never a qualified pension program, and neither
the clergy nor the parishes contributed to this fund.
Allowance for Disabled Priests, Early Retirees, and Widows
For a disabled priest, years of service continue to accrue until age 65. For
example, if a priest becomes disabled at age 50 after completing 10 years of active
service, his total years of service at age 65 equal 25 years.
For clergy who retire with the approval of the Metropolitan Primate between ages
62 and 65, the allowance is reduced by 0.5 percent per month for each month that
the participant retires before age 65.
At the demise of a priest who is receiving the archdiocese’s retired clergy
allowance, the widowed khourieh is eligible to receive 75 percent of that
allowance for the rest of her life once she herself reaches age 65; however, if a
widowed khourieh remarries, she automatically forfeits the allowance.
Personal Retirement Plans
Personal plans have included Retirement Selector Accounts (RSAs), SEP IRAs,
and traditional or Roth IRAs. Changes in the IRS code have affected some of
these choices; nevertheless, the Department of Clergy Insurance and Retirement
strongly urges each priest to establish and contribute regularly to a personal
retirement plan in addition to the Defined Contribution Plan described above.
Individual Retirement Accounts (IRAs)
An Individual Retirement Account (IRA) is an investment account that meets
government regulations for individual investment of money for retirement. Two
types of IRA are available, traditional and Roth:
The money contributed to a traditional IRA is tax-deferred. The investor pays
no tax on contributions in the year they are contributed. The contributions and
the investment earnings are taxed at the time of withdrawal. The government
taxes withdrawals at the tax rate of the retiree, which is likely to be lower than
when contributions are made during the peak earning years.
14
. . . . . . . . .
The money contributed to a Roth IRA is taxable in the year it is contributed.
Neither the contributions nor the investment earnings are taxed at the time of
withdrawal. Also, the IRS does not compel the owner to take mandatory
distributions; therefore, it is possible to pass a Roth IRA account untouched to
heirs. The retiree enjoys tax-free income from this type of IRA. Roth IRAs
can be especially beneficial to young clergy, who may accrue significant
earnings that are nontaxable income during retirement.
As noted above a traditional or Roth IRA can also be a useful tool for receiving
and managing mandatory distributions from the Defined Contribution Plan.
Merrill Lynch has provided such services for the clergy of the Archdiocese, but
banks, other brokerage houses, mutual fund companies, insurers and other
financial institutions offer traditional and Roth IRAs with a wide range of
investment options and risk factors. Most of these institutions will gladly consult
with potential clients to select investments that best fit an individual’s specific
situation.
Contributing to a Personal Retirement Plan
While some pastors struggle to maintain a balanced budget, the Department of
Clergy Insurance and Retirement strongly urges clergy to make regular
contributions to a personal retirement plan. While clergy can borrow money to
buy a house or to finance their children’s education, they cannot borrow money on
which to retire.
Here are some strategies for making regular contributions:
Some priests choose to put the gifts they receive for blessing homes into their
retirement accounts.
Some priests also choose to apply any cost-of-living increases or merit raises
they may receive into their retirement accounts.
As daunting an exercise as retirement planning may seem, it is a vitally important
aspect of our personal and financial stewardship. Both the Department of Clergy
Insurance and Retirement and our Merrill Lynch account representatives are
available to help make prudent choices.
15
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4. Health Insurance
In both industry and the nonprofit sector, the issue of health insurance benefits has
become increasingly problematic due to the rapid rise in the cost of healthcare.
The Department of Clergy Insurance and Retirement continues to monitor
developments in the political and judicial areas surrounding the “Affordable Care
Act.”
In this context, the Antiochian Orthodox Archdiocese, the Greek Orthodox
Archdiocese, the Orthodox Church in America, the Serbian Orthodox Church, the
Ukrainian Orthodox Church, ROCOR, and the Diocese of the Armenian Church
of America have joined together to sponsor and offer The Joint Orthodox Health
Plan.
The current carrier is Aetna U.S. Healthcare, which offers the Joint Orthodox
Health Plan using a Preferred Provider Option (PPO), and as of last year now
includes a Health Reimbursement Account (HRA) component. Premium rates
currently are $ 1505 per month for a single participant, and $ 2637 per month for a
family. Premium adjustments occur during the month of May each year.
This section provides the following information about the Joint Orthodox Health
Plan:
Brief description of the plan
Eligibility and enrollment information
Health insurance alternatives for those who choose not to participate in the
plan
Claim forms are available from the Archdiocese and from GDC Financial, the
broker which administers the Joint Orthodox Health Plan. Contact GDC Financial
at (800) 785-4432 or (203) 367-4070.
Plan Description
A health insurance plan with a Open Access Managed Choice (POS) allows
participants to receive medical services either from “preferred” healthcare
providers, such as physicians, hospitals, and pharmacies, who belong to the plan’s
provider network, or from providers outside this network. For more details, please
read http://orthodoxhealthplans.com/documents. The system has three
components:
The HealthFund – at the start of each calendar year, the participant receives a
deposit into his HealthFund to help pay for eligible out-of-pocket health care costs
automatically;
16
. . . . . . . . .
The deductible – is the amount the insured pays before the health plan begins to
pay for any eligible expenses. HealthFund payments go towards the deductible
and help to meet the deductible; and
The health plan – pays for most eligible expenses after the deductible is met. The
insured then pays a smaller share of these costs out-of-pocket until reaching the
maximum limit.
The Orthodox HealthPlan puts a certain amount of money ($750/$1500) into the
HRA HealthFund. This money helps to pay for eligible medical expenses and to
meet the health plan deductible.
In summary, the HRA HealthFund pays for eligible medical expenses
automatically. After using all of the money in the HRA HealthFund, the insured
pays any additional expenses incurred towards his deductible. After the deductible
is met, the plan covers most of the remaining expenses. The HealthFund
payments count towards meeting the deductible. Once the HealthFund is
depleted, the insured is responsible for any additional costs incurred until the
deductible is satisfied.
The Joint Orthodox Health Plan has two levels of coverage:
In-network providers: services usually covered at 90% after a $35.00 co-
payment
Out-of-network providers: services usually covered at 70% after applying an
annual deductible; no copayments
The Joint Orthodox Health Plan also includes prescription, dental, and vision
coverage:
The prescription plan covers generic and brand-name drugs. See the benefits
summary for a detailed description of prescription coverage.
The dental plan provides coverage for preventive services (for example,
cleanings), basic services (fillings, etc.), and major services (crowns, etc.).
The plan has an annual deductible. See the benefits summary for a detailed
description of dental coverage.
The Vision One discount program is an integrated feature of the health plan.
See the brochure that comes with the introductory information from Aetna for
descriptions of discounts, participating locations, and a toll-free telephone
number for further information.
Plan benefits change periodically. Aetna distributes updated information to
participants when benefits change. Keep the latest benefits summaries with this
manual and discard old summaries when new ones arrive. The latest plan
summary can be found at www.orthodoxhealthplans.com.
17
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Eligibility and Enrollment
All full-time clergy are eligible to enroll in the Joint Orthodox Health Plan. Upon
ordination, new clergy should request an enrollment form from the Archdiocese
headquarters. Clergy already enrolled in the plan can use the enrollment form as a
change of information form (for example, to add dependents or remove adult
children).
Upon enrollment, Cigna sends enrolled clergy an information packet that includes
the following materials:
Provider directory
Summaries of medical, prescription, and dental benefits
Introductory brochure
Pharmacy listing
Pamphlet and order form for mail-order drugs
Vision One brochure
Internet address card
Claims forms for medical and dental benefits
Claims envelope
Alternatives to the Archdiocese Plan
Clergy are not required to participate in the Archdiocese plan. If the plan does not
provide network coverage in a given locale, or if there are preferable alternatives
that offer equal benefits, clergy may choose other plans.
Often clergy choose to enroll in plans that are available through their spouse’s
employment. If clergy adopt this option, their compensation from the parish is
negotiable as there would be significant savings to the parish’s operating budget. If
you would like some help with the process of finding the best suitable plan for the
parish and the pastor, please call Fr. Paul Matar at (201) 871-1355.
Clergy can also evaluate these options:
Health plans available through a local chamber of commerce or small business
association (Such plans may require membership dues or other enrollment fees
to participate.)
Private-pay plans (These plans usually lack premium discounts that are
available through group plans and may not have readily accessible appeals
processes or other protections.)
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Clergy should remember, however, if they choose another health plan and later
want to enroll in the Joint Orthodox Health Plan, a medical exam may be needed
to determine eligibility.
While some clergy have tried to enroll in the health plans offered by parishioners’
businesses, the Department of Clergy Insurance and Retirement discourages this
practice because it skirts ethical issues and blurs the relationship between pastors
and parishioners.
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5. Confidential Assistance Program
The Confidential Assistance Program (CAP) is a service available to clergy and
their family members free of charge to provide immediate, confidential assistance
from trained counselors for any problem for which assistance is needed. Such
problems include but are not limited to the following issues:
Marital, family, and other relationship issues
Emotional, stress, and work/career issues
Grief counseling
Mental illness
Child and elder care questions
Financial and legal problems
Real estate transactions
Substance abuse and violence
Availability of CAP Services
Clergy or family members who identify themselves as associated with the
Antiochian Orthodox Christian Archdiocese are considered eligible to receive
services. Unlimited telephone counseling and up to five face-to-face counseling
sessions are available each time a person contacts the Confidential Assistance
Program.
Our CAP provider has changed. Our new provider, ComPsych, makes counselors
are available 24 hours a day, 365 days a year by calling (800) 272-7255. For TDD
call (800) 697-0353. Online resources are available at guidanceresources.com.
The Archdiocese’s Company ID is COM589. No voice mail, answering
machines, or answering services are used. Callers who seek a face-to-face
appointment can request one from the counselor answering the phone.
Appointments for face-to-face counseling are made within three days for non-
urgent requests and within 24 hours (same day) in an emergency.
Confidentiality is strictly maintained. Information or records kept by CAP will
not become part of the participant’s personnel file.
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Referrals and Follow-up
In addition to phone and face-to-face counseling with CAP counselors, counselors
can refer clergy or family members to providers capable of giving any extended or
specialized care necessary to address the problems identified. Depending on the
problem, providers might include mental health professionals, credit counseling
services, legal resources, or other appropriate professionals. Counselors make
every effort to accommodate individual preferences in terms of gender, location,
financial limitations, or age. Counselors notify the provider that the person will be
calling to set up an appointment.
Counselors review the cost of the recommended care and applicable benefit
coverage with the person seeking assistance before making recommendations.
Counselors strive to make referrals that do not create financial hardship or that are
eligible for benefit reimbursement.
Two weeks after the last face-to-face counseling session, CAP counselors follow
up by telephone with the person who sought assistance to determine whether the
person connected successfully with the referred provider and whether the person is
satisfied with the provider. Any unsatisfactory outcome will be addressed with
additional face-to-face counseling or another referral. Counselors follow up every
four weeks thereafter for up to three months to assure that the person is doing well
and is satisfied with CAP services provided and with any referrals.
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Annex
What will be my social security check when I retire?
Social Security is one of the major income for pastor’s in retirement years. A great
number of pastors will rely on the SS payments for their everyday expenses. It is
important to know how will Social Security calculate the monthly payments. The
calculation and process shown below emphasize the need for pastors to contribute
to a 401k as much as possible and at the same time contribute to the social security
system. The years worked and the income per year is a determining factor for the
pastor well-being at retirement.
Social security uses many variables to determine the amount of your monthly
income upon retirement. The formula is based on 4 factors:
Amount of years worked
Inflation index
Yearly Income prior to retirement
Bend points
In order to put all the above in a formula Social security will use the following:
1- Calculate your AIME (Average Indexed Monthly Earnings)
When we read this we think it is the average taxable income of all of our
working years. In fact, there are couple of ins and outs to this process.
A- Social Security only uses the highest 35 years of taxable income in the
calculation. If you worked less than 35 years, let us say 30 years, than
the taxable income for those years is 0. This will lower your monthly
income tremendously.
B- Social Security will adjust your income for inflation (by using the
AWI –average wage index) then calculate the AIME.
How do we know the AWI?
AWI is determined annually by SSA with a two-year
retardation. SSA will use the AWI for the year you turn 60
since 62 is the earliest age you can claim social security.
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“When indexing an individual's earnings for benefit
computation purposes, we must first determine the year of first
eligibility for benefits. For retirement, eligibility is at age 62. If
a person reaches age 62 in 2019, for example, then 2019 is the
person's year of eligibility. We always index an individual's
earnings to the average wage level two years prior to the year
of first eligibility. Thus, for a person retiring at age 62 in 2019,
we would index the person's earnings to the average wage
index for 2017 (table in link below), or 50,321.89. We would
multiply earnings in a year before 2017 by the ratio of
50,321.89 to the average wage index for that year; we would
take earnings in 2017 or later at face value.)”8
For example, if you turn 62 in 2019, then your earning would
be indexed to 2017’ AWI.
TO index a year of your past income using the AWI for 2017,
you divide 53,880 by the AWI for the year being adjusted to
get an indexing factor.
For example, let us say you want to calculate your indexed
earning for 2010, when you made 40,000.
First you divide the 2017 AWI (50321.89) with your
earning of 2010. That gives you an index factor of
1.258 for 2010.
Then you multiply your index factor with your
earnings to that year 50000* 1.258= 62900 as Indexed
Earning.
Then you will do the same process for the highest 35
years of your income.
The total will be divided by 420 (numbers of month in
45 years). This is your AIME number
AIME number is not what you will collect monthly in
your retirement years. Social security will add another
layer of calculation called Bend Points.
8 https://www.ssa.gov/oact/cola/AWI.html
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2- Calculate your Bend Points
Bend points will reduce your AIME at three different income level in order to
get you to the primary insurance amount (PIA) you will actually receive from
the SSA. The “points” also like the AWI Index in a sense that they change
every year.
You will only get a certain percentage of your AIME up to each bend
point. The percentages are a constant by law, however the income that
trigger bend points is the one that changes according to the AWI.
Up to first Bend point----- 90% of AIME
First to Second Bend Point- 32% of AIME
After second Bend Point- 15% of AIME
In 2019 the list is as follows:
(a) 90 percent of the first $926 of his/her average
indexed monthly earnings, plus
(b) 32 percent of his/her average indexed monthly
earnings over $926 and through $5,583, plus
(c) 15 percent of his/her average indexed monthly
earnings over $5,583.9
For instance, if your AIME is $5500 the calculation will be
90%($926) +32%($5583-$926) +15%(0) =$2323.64
You will collect a monthly amount of $ 2,323.64 from the Social Security
9 https://www.ssa.gov/oact/cola/piaformula.html